Education

SBI Canada Bank offers ‘Student GIC Program’ for higher studies in Canada

TwistArticleDecember 12, 2020
S B I Canada Bank Introduced Student G I C Program In Canada

SBI Canada Bank has introduced the Student GIC Program which will benefit the students migrating from India to Canada for higher studies.

However, if you intend to study in Canada as an international student, you must show proof that you can support yourself financially while you are in Canada.

So to help with the above matter, now you can purchase a GIC from SBI Canada Bank for CAD10,000 to meet the requirements of your student visa application.

What is GIC:

GIC stands for “Guaranteed Investment Certificate” which is a short term liquid investment usually for up to a year offered by Canadian Banks. As per the Citizen Immigration Canada (CIC) requirements under Student Partner Program (SPP) Visa, the students applying under SPP Visa Category for studies in Canadian Colleges are required to invest CAD 10,000 in the form of GIC with Canadian Banks.

How does the Student GIC Program work?

After setting up an account with SBI Canada Bank, you need to transfer CAD10,000 plus fees to purchase the GIC.

After a successful verification and account activation, the bank will then open two accounts in your name:

1. A Super Saver account or a Chequing Account: The bank will credit CAD2,000 to this account.
2. A Non-Redeemable Student GIC account: The bank will invest the remaining CAD8,000 in a non-redeemable and non-renewable GIC account for a one-year term.

The money in your GIC account will earn interest. Each month for 12 months, an equal monthly installment of principal and interest will be paid from your GIC account into your savings or chequing account.

The features of the SBI Student GIC (Guaranteed Investment Certificate) Program:

The features of the SBI GIC Program are as under;

  • GICs are available both in Canadian Dollar (CAD) and US Dollar (USD).
  • Interest on the GICs has compounded annually and paid out at the end of the term.
  • If the GIC is for a term of less than one year, a simple rate of interest calculated on the entire term of the investment shall be paid.
  • An amount of $2,000.00 (CAD) plus accrued interest will be credited to the student’s high interest-bearing Super Saver Account at the time of his/her first in-person branch visit.

In addition to this, the residual amount of $ 8,000.00 (CAD) will be invested in a Non-redeemable GIC account for a one-year term. An equated monthly installment (EMI of principal +interest) will be paid from this Non-redeemable GIC account and credited to the student’s super saver account each month for 12 continuous months. The service charges for this program are CAD 100.00 and it is not refundable.

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TwistArticleDecember 12, 2020
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